14th Nov 2007 10:05
Ryanair Holdings PLC14 November 2007 RYANAIR SUES EUROPEAN COMMISSION FOR ITS FAILURE TO INVESTIGATE ILLEGAL STATE AID TO LUFTHANSA AT MUNICH AIRPORT Ryanair, Europe's largest low fares airline, today (Wednesday, 14th November2007) lodged a case in the European Court of First Instance against the EuropeanCommission's failure to act on Ryanair's complaint regarding illegal State aidgranted by the German authorities to Lufthansa at Terminal 2 in Munich Airport.The Commission has ignored Ryanair's calls for an investigation of this obviousabuse of the EU State aid rules for over two years. Announcing the launch of these proceedings, Michael O'Leary, Ryanair's CEO,said: "Lufthansa / Star Alliance have exclusive use of Terminal 2 in Munich, which wasprovided at a cost of €1.5 billion (over €1 billion paid by the GermanGovernment and the Regional Authorities), and which has led to the airportincurring losses of over €100 million in 2004-2005. No private investor wouldhave invested in the loss making facility and then granted exclusive access tojust one airline. Lufthansa is therefore receiving substantial State aid atMunich airport, which distorts competition in the European air transport market. "We have called on the European Commission to investigate these seriousdistortions of competition in favour of Lufthansa at Munich. Munich Airport'srefusal to allow Ryanair to use this facility has subjected passengers inBavaria to the stranglehold of Lufthansa's high fares and fuel surcharges whileLufthansa has unfairly benefited from substantial amounts of State aid. "Ryanair has been left with no alternative but to challenge the Commission'sinaction in the European courts. We are calling on the Commission to startpromoting competition and to stop protecting flag carrier high fare airlineswhich continue to receive large amounts of unlawful State aid." Ends. Wednesday, 14th November 2007 For information: Peter Sherrard - Ryanair Pauline McAlester - Murray ConsultantsTel: 00 353 1 812 1228 Tel: 00 353 1 4980 300 This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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